Sony Group Corporation (SONY) Q2 2022 Earnings Call Transcript

Sony Group Corporation (NYSE:SONY) Q2 2022 Earnings Conference Call November 1, 2022 3:00 AM ET

Company Participants

Hiroki Totoki - Executive Deputy President and CFO

Sadahiko Hayakawa - Senior Vice President, in-charge of Finance and IR

Conference Call Participants

Kentaro Tsutsumi - Nikkei

Yamasaki - Kyodo News Agency

Shimai Kenta - NHK

Toyokasei - Sasaki

Masahiro Ono - Morgan Stanley MUFG

Junya Ayada - JPMorgan Securities

Kenji Yasui - UBS Securities

Ryosuke Katsura - SMBC Nikko Securities

Operator

We’d now like to begin Sony Group Earnings Announcement. I’ll be serving as the Moderator. I’m from Corporate Communications, my name is Okada. First, Executive Deputy President and CFO, Totoki will present the FY 2022 second quarter earnings and FY 2022 forecast followed by Q&A. In total we are scheduling for 70 minutes.

With no further ado Mr. Totoki, please.

Hiroki Totoki

Today, I would like to start by talking about the business environment surrounding Sony. We recognize that the risk of the global economy slowing down is increasing further due to factors such as rising tensions between the U.S. and China, soaring energy prices and expanding inflationary pressure, as well as rapid interest rate hikes in various countries.

We are taking steps to prepare for further deterioration of the business environment in each of our businesses, especially in Entertainment, Technology & Services, ET&S and Imaging & Sensing Solutions I&SS, which are relatively more sensitive to an economic recession.

Now I would like to explain the following: the consolidated results for the second quarter ended September 30, FY ‘22 Q2 and the consolidated results. Consolidated sales for the quarter increased 16%, compared to the same quarter of the previous fiscal year, year-on-year to JPY2,751.9 billion, and consolidated operating income increased JPY25.6 billion to JPY344.0 billion, both record highs for the second quarter and first half.

Income before income taxes increased JPY62.7 billion year-on-year to JPY345.8 billion, and net income attributable to Sony Group Corporation's shareholders increased JPY50.9 billion to JPY264.0 billion.

This shows the results by segment for FY ‘22 Q2. Next, I will explain the FY ‘22 consolidated earnings forecast. The forecast for consolidated sales is JPY 11.600 trillion, an increase of JPY100 billion from the previous forecast. The forecast for operating income is upwardly revised to JPY1.160 trillion, an increase of JPY50 billion and the same amount that we forecasted at the beginning of the fiscal year.